CUSMA/USMCA/T-MEC

CUSMA/USMCA/T-MEC

CUSMA/USMCA/T-MEC

CUSMA/USMCA/T-MEC

CUSMA/
USMCA/
T-MEC

CUSMA/USMCA/T-MEC - What you need to know

The Canada-United States-Mexico Agreement (CUSMA) enters into force on July 1st, 2020, replacing the North American Free Trade Agreement (NAFTA). CUSMA retains many similarities with NAFTA however there are some changes in key industries, such as agriculture and automotive, along with some improvements to better facilitate the free flow of goods between all three countries. 

You may wish to refer to The Canada-United States-Mexico Agreement: What importers need to know for the most up-to-date CUSMA-related information or, visit CUSMA Frequently Asked Questions & Answers.

For your convenience, we have created a fillable CUSMA certification of origin form (pdf). Should any additional information be required, please contact us.

Implementation:

On June 30th, 2020, NAFTA will end, and on July 1st, CUSMA will come into effect.  NAFTA certificates of origin will be replaced with the CUSMA certification.  NAFTA certificates will still be required however, to support refund claims for goods imported under the NAFTA era, and where the refund claim is filed within one year from the date of accounting.

Key points:

  • CUSMA certification of origin requirements will replace the current NAFTA certificates.
  • There is no prescribed CUSMA form. A certificate may be provided on an invoice or "any other document" that has the required data elements outlined below. For your convenience, we have developed a fillable form which you may use.
  • Provided the CUSMA certification of origin requirements are met, then CUSMA duty free status can be claimed.
  • Much of the CUSMA regulations remain unchanged from NAFTA.
  • The most impactful changes affect Low Value Courier shipments, the automotive industry, and textile and apparel goods.

Required Data Elements for a CUSMA Certification of Origin:

The CUSMA certification of origin must include the following (Annex 5-A) in order to be valid:

  1. Identify the Certifier (including company name, title, full address, telephone number and e-mail address). This can be the Importer; Exporter; or Producer;
  2. Exporter (including name, title, full address, telephone number and e-mail address if different from the certifier. This information is not required if the producer is completing the certification of origin and does not know the identity of the exporter.);
  3. Producer (including name, title, full address, telephone number and e-mail address if different from the certifier. If there are multiple producers, state “Various” or provide a list of producers. A person that wishes for this information to remain confidential may state “Available upon request by the importing authorities”);
  4. Importer (If known, including name, title, full address, telephone number and e-mail address if different from the certifier);
  5. Description of the originating goods in sufficient detail to enable identification, including Tariff Classification to the 6-digit level;
  6. Origin Criteria;
  7. Blanket Period (if applicable- up to 12 Months max – example: Jan 1 – Dec 31 not Jan 1 – Jan 1);
  8. Authorized Signature and Date of the Certifier (electronic signatures are acceptable);
  9. A specific statement that must be used verbatim as follows: "I certify that the goods described in this document qualify as originating and the information contained in this document is true and accurate.  I assume responsibility for providing such representations and agree to maintain and present upon request or to make available during a verification visit, documentation necessary to support this certification".

Low-Value changes:

Shipments with a value less than $3300 CAD (increased from $2500 CAD) will be exempt from requiring a formal certification of origin **for all Free Trade Agreements currently in force - not just CUSMA**, however, the country of origin is still required on the commercial documents.

New De-minimis rules:

Shipments with a value below the de-minimis threshold are exempt from needing a certification of origin

  • $40 - Goods valued at $40 CAD or less will not be charged duties and taxes if imported directly from a CUSMA country, regardless of the country of origin.
  • $40.01-$150 - Goods valued from $40.01 CAD to $150 CAD will not be charged duty but are subject to applicable Federal and Provincial taxes if imported directly from a CUSMA country, regardless of the country of origin.
  • $20 - Goods valued at $20 CAD or less will not be charged duties and taxes if imported directly from a non-CUSMA country.

New Tariff Rate Quotas (TRQs):

Phased in over an agreed upon period of years to increase market access to specified agricultural products such as dairy, poultry and eggs. More information can be found here.

Automotive Industry changes to origin rules & labour provisions:

(More information can be found here - Annex 4-B)

  • A higher Regional Value Content (RVC) requirement for certain automobiles and automobile components; 75% must be from a CUSMA/USMCA/T-MEC country (increased from 62.5%).
  • A new Labor Value Content (LVC) requirement where a certain percentage of a car producer’s activities must be carried out by workers earning an average wage of at least $16/hour USD.
  • At least 70% of steel and aluminum purchases made by vehicle producers must originate in North America.
  • With the exception of metallurgical processes, 70% of all steel manufacturing processes must take place in a CUSMA/USMCA/T-MEC country.

Textile & Apparel – Tariff Preference Levels (TPL):

The quota will decrease for wool apparels from the US and will increase for cotton/man-made fibre apparels from the US. Previously established commitments under NAFTA have remained largely unchanged. More information can be found here.

Regional Value Content (RVC) under CUSMA:

Details on Regional value content can be found here (p.7).

 

CUSMA/USMCA/T-MEC - What you need to know

The Canada-United States-Mexico Agreement (CUSMA) enters into force on July 1st, 2020, replacing the North American Free Trade Agreement (NAFTA). CUSMA retains many similarities with NAFTA however there are some changes in key industries, such as agriculture and automotive, along with some improvements to better facilitate the free flow of goods between all three countries. 

You may wish to refer to The Canada-United States-Mexico Agreement: What importers need to know for the most up-to-date CUSMA-related information or, visit CUSMA Frequently Asked Questions & Answers.

Should any additional information be required, please contact us.

Implementation:

On June 30th, 2020, NAFTA will end, and on July 1st, CUSMA will come into effect.  NAFTA certificates of origin will be replaced with the CUSMA certification.  NAFTA certificates will still be required however, to support refund claims for goods imported under the NAFTA era, and where the refund claim is filed within one year from the date of accounting.

Key points:

  • CUSMA certification of origin requirements will replace the current NAFTA certificates.
  • There is no prescribed CUSMA form. A certificate may be provided on an invoice or "any other document" that has the required data elements outlined below. For your convenience, we have developed a fillable form which you may use.
  • Provided the CUSMA certification of origin requirements are met, then CUSMA duty free status can be claimed.
  • Much of the CUSMA regulations remain unchanged from NAFTA.
  • The most impactful changes affect Low Value Courier shipments, the automotive industry, and textile and apparel goods.

Required Data Elements for a CUSMA Certification of Origin:

The CUSMA certification of origin must include the following (Annex 5-A) in order to be valid:

  1. Identify the Certifier (including company name, title, full address, telephone number and e-mail address). This can be the Importer; Exporter; or Producer;
  2. Exporter (including name, title, full address, telephone number and e-mail address if different from the certifier. This information is not required if the producer is completing the certification of origin and does not know the identity of the exporter.);
  3. Producer (including name, title, full address, telephone number and e-mail address if different from the certifier. If there are multiple producers, state “Various” or provide a list of producers. A person that wishes for this information to remain confidential may state “Available upon request by the importing authorities”);
  4. Importer (If known, including name, title, full address, telephone number and e-mail address if different from the certifier);
  5. Description of the originating goods in sufficient detail to enable identification, including Tariff Classification to the 6-digit level;
  6. Origin Criteria;
  7. Blanket Period (if applicable- up to 12 Months max – example: Jan 1 – Dec 31 not Jan 1 – Jan 1);
  8. Authorized Signature and Date of the Certifier (electronic signatures are acceptable);
  9. A specific statement that must be used verbatim as follows: "I certify that the goods described in this document qualify as originating and the information contained in this document is true and accurate.  I assume responsibility for providing such representations and agree to maintain and present upon request or to make available during a verification visit, documentation necessary to support this certification".

Low-Value changes:

Shipments with a value less than $3300 CAD (increased from $2500 CAD) will be exempt from requiring a formal certification of origin **for all Free Trade Agreements currently in force - not just CUSMA**, however, the country of origin is still required on the commercial documents.

New De-minimis rules:

Shipments with a value below the de-minimis threshold are exempt from needing a certification of origin

  • $40 - Goods valued at $40 CAD or less will not be charged duties and taxes if imported directly from a CUSMA country, regardless of the country of origin.
  • $40.01-$150 - Goods valued from $40.01 CAD to $150 CAD will not be charged duty but are subject to applicable Federal and Provincial taxes if imported directly from a CUSMA country, regardless of the country of origin.
  • $20 - Goods valued at $20 CAD or less will not be charged duties and taxes if imported directly from a non-CUSMA country.

New Tariff Rate Quotas (TRQs):

Phased in over an agreed upon period of years to increase market access to specified agricultural products such as dairy, poultry and eggs. More information can be found here.

Automotive Industry changes to origin rules & labour provisions:

(More information can be found here - Annex 4-B)

  • A higher Regional Value Content (RVC) requirement for certain automobiles and automobile components; 75% must be from a CUSMA/USMCA/T-MEC country (increased from 62.5%).
  • A new Labor Value Content (LVC) requirement where a certain percentage of a car producer’s activities must be carried out by workers earning an average wage of at least $16/hour USD.
  • At least 70% of steel and aluminum purchases made by vehicle producers must originate in North America.
  • With the exception of metallurgical processes, 70% of all steel manufacturing processes must take place in a CUSMA/USMCA/T-MEC country.

Textile & Apparel – Tariff Preference Levels (TPL):

The quota will decrease for wool apparels from the US and will increase for cotton/man-made fibre apparels from the US. Previously established commitments under NAFTA have remained largely unchanged. More information can be found here.

Regional Value Content (RVC) under CUSMA:

Details on Regional value content can be found here (p.7).

 

CUSMA/USMCA/T-MEC - What you need to know

The Canada-United States-Mexico Agreement (CUSMA) enters into force on July 1st, 2020, replacing the North American Free Trade Agreement (NAFTA). CUSMA retains many similarities with NAFTA however there are some changes in key industries, such as agriculture and automotive, along with some improvements to better facilitate the free flow of goods between all three countries. 

You may wish to refer to The Canada-United States-Mexico Agreement: What importers need to know for the most up-to-date CUSMA-related information or, visit CUSMA Frequently Asked Questions & Answers.

Should any additional information be required, please contact us.

Implementation:

On June 30th, 2020, NAFTA will end, and on July 1st, CUSMA will come into effect.  NAFTA certificates of origin will be replaced with the CUSMA certification.  NAFTA certificates will still be required however, to support refund claims for goods imported under the NAFTA era, and where the refund claim is filed within one year from the date of accounting.

Key points:

  • CUSMA certification of origin requirements will replace the current NAFTA certificates.
  • There is no prescribed CUSMA form. A certificate may be provided on an invoice or "any other document" that has the required data elements outlined below. For your convenience, we have developed a fillable form which you may use.
  • Provided the CUSMA certification of origin requirements are met, then CUSMA duty free status can be claimed.
  • Much of the CUSMA regulations remain unchanged from NAFTA.
  • The most impactful changes affect Low Value Courier shipments, the automotive industry, and textile and apparel goods.

Required Data Elements for a CUSMA Certification of Origin:

The CUSMA certification of origin must include the following (Annex 5-A) in order to be valid:

  1. Identify the Certifier (including company name, title, full address, telephone number and e-mail address). This can be the Importer; Exporter; or Producer;
  2. Exporter (including name, title, full address, telephone number and e-mail address if different from the certifier. This information is not required if the producer is completing the certification of origin and does not know the identity of the exporter.);
  3. Producer (including name, title, full address, telephone number and e-mail address if different from the certifier. If there are multiple producers, state “Various” or provide a list of producers. A person that wishes for this information to remain confidential may state “Available upon request by the importing authorities”);
  4. Importer (If known, including name, title, full address, telephone number and e-mail address if different from the certifier);
  5. Description of the originating goods in sufficient detail to enable identification, including Tariff Classification to the 6-digit level;
  6. Origin Criteria;
  7. Blanket Period (if applicable- up to 12 Months max – example: Jan 1 – Dec 31 not Jan 1 – Jan 1);
  8. Authorized Signature and Date of the Certifier (electronic signatures are acceptable);
  9. A specific statement that must be used verbatim as follows: "I certify that the goods described in this document qualify as originating and the information contained in this document is true and accurate.  I assume responsibility for providing such representations and agree to maintain and present upon request or to make available during a verification visit, documentation necessary to support this certification".

Low-Value changes:

Shipments with a value less than $3300 CAD (increased from $2500 CAD) will be exempt from requiring a formal certification of origin **for all Free Trade Agreements currently in force - not just CUSMA**, however, the country of origin is still required on the commercial documents.

New De-minimis rules:

Shipments with a value below the de-minimis threshold are exempt from needing a certification of origin

  • $40 - Goods valued at $40 CAD or less will not be charged duties and taxes if imported directly from a CUSMA country, regardless of the country of origin.
  • $40.01-$150 - Goods valued from $40.01 CAD to $150 CAD will not be charged duty but are subject to applicable Federal and Provincial taxes if imported directly from a CUSMA country, regardless of the country of origin.
  • $20 - Goods valued at $20 CAD or less will not be charged duties and taxes if imported directly from a non-CUSMA country.

New Tariff Rate Quotas (TRQs):

Phased in over an agreed upon period of years to increase market access to specified agricultural products such as dairy, poultry and eggs. More information can be found here.

Automotive Industry changes to origin rules & labour provisions:

(More information can be found here - Annex 4-B)

  • A higher Regional Value Content (RVC) requirement for certain automobiles and automobile components; 75% must be from a CUSMA/USMCA/T-MEC country (increased from 62.5%).
  • A new Labor Value Content (LVC) requirement where a certain percentage of a car producer’s activities must be carried out by workers earning an average wage of at least $16/hour USD.
  • At least 70% of steel and aluminum purchases made by vehicle producers must originate in North America.
  • With the exception of metallurgical processes, 70% of all steel manufacturing processes must take place in a CUSMA/USMCA/T-MEC country.

Textile & Apparel – Tariff Preference Levels (TPL):

The quota will decrease for wool apparels from the US and will increase for cotton/man-made fibre apparels from the US. Previously established commitments under NAFTA have remained largely unchanged. More information can be found here.

Regional Value Content (RVC) under CUSMA:

Details on Regional value content can be found here (p.7).

 

CUSMA/USMCA/T-MEC - What you need to know

The Canada-United States-Mexico Agreement (CUSMA) enters into force on July 1st, 2020, replacing the North American Free Trade Agreement (NAFTA). CUSMA retains many similarities with NAFTA however there are some changes in key industries, such as agriculture and automotive, along with some improvements to better facilitate the free flow of goods between all three countries. 

You may wish to refer to The Canada-United States-Mexico Agreement: What importers need to know for the most up-to-date CUSMA-related information or, visit CUSMA Frequently Asked Questions & Answers.

Should any additional information be required, please contact us.

Implementation:

On June 30th, 2020, NAFTA will end, and on July 1st, CUSMA will come into effect.  NAFTA certificates of origin will be replaced with the CUSMA certification.  NAFTA certificates will still be required however, to support refund claims for goods imported under the NAFTA era, and where the refund claim is filed within one year from the date of accounting.

Key points:

  • CUSMA certification of origin requirements will replace the current NAFTA certificates.
  • There is no prescribed CUSMA form. A certificate may be provided on an invoice or "any other document" that has the required data elements outlined below. For your convenience, we have developed a fillable form which you may use.
  • Provided the CUSMA certification of origin requirements are met, then CUSMA duty free status can be claimed.
  • Much of the CUSMA regulations remain unchanged from NAFTA.
  • The most impactful changes affect Low Value Courier shipments, the automotive industry, and textile and apparel goods.

Required Data Elements for a CUSMA Certification of Origin:

The CUSMA certification of origin must include the following (Annex 5-A) in order to be valid:

  1. Identify the Certifier (including company name, title, full address, telephone number and e-mail address). This can be the Importer; Exporter; or Producer;
  2. Exporter (including name, title, full address, telephone number and e-mail address if different from the certifier. This information is not required if the producer is completing the certification of origin and does not know the identity of the exporter.);
  3. Producer (including name, title, full address, telephone number and e-mail address if different from the certifier. If there are multiple producers, state “Various” or provide a list of producers. A person that wishes for this information to remain confidential may state “Available upon request by the importing authorities”);
  4. Importer (If known, including name, title, full address, telephone number and e-mail address if different from the certifier);
  5. Description of the originating goods in sufficient detail to enable identification, including Tariff Classification to the 6-digit level;
  6. Origin Criteria;
  7. Blanket Period (if applicable- up to 12 Months max – example: Jan 1 – Dec 31 not Jan 1 – Jan 1);
  8. Authorized Signature and Date of the Certifier (electronic signatures are acceptable);
  9. A specific statement that must be used verbatim as follows: "I certify that the goods described in this document qualify as originating and the information contained in this document is true and accurate.  I assume responsibility for providing such representations and agree to maintain and present upon request or to make available during a verification visit, documentation necessary to support this certification".

Low-Value changes:

Shipments with a value less than $3300 CAD (increased from $2500 CAD) will be exempt from requiring a formal certification of origin **for all Free Trade Agreements currently in force - not just CUSMA**, however, the country of origin is still required on the commercial documents.

New De-minimis rules:

Shipments with a value below the de-minimis threshold are exempt from needing a certification of origin

  • $40 - Goods valued at $40 CAD or less will not be charged duties and taxes if imported directly from a CUSMA country, regardless of the country of origin.
  • $40.01-$150 - Goods valued from $40.01 CAD to $150 CAD will not be charged duty but are subject to applicable Federal and Provincial taxes if imported directly from a CUSMA country, regardless of the country of origin.
  • $20 - Goods valued at $20 CAD or less will not be charged duties and taxes if imported directly from a non-CUSMA country.

New Tariff Rate Quotas (TRQs):

Phased in over an agreed upon period of years to increase market access to specified agricultural products such as dairy, poultry and eggs. More information can be found here.

Automotive Industry changes to origin rules & labour provisions:

(More information can be found here - Annex 4-B)

  • A higher Regional Value Content (RVC) requirement for certain automobiles and automobile components; 75% must be from a CUSMA/USMCA/T-MEC country (increased from 62.5%).
  • A new Labor Value Content (LVC) requirement where a certain percentage of a car producer’s activities must be carried out by workers earning an average wage of at least $16/hour USD.
  • At least 70% of steel and aluminum purchases made by vehicle producers must originate in North America.
  • With the exception of metallurgical processes, 70% of all steel manufacturing processes must take place in a CUSMA/USMCA/T-MEC country.

Textile & Apparel – Tariff Preference Levels (TPL):

The quota will decrease for wool apparels from the US and will increase for cotton/man-made fibre apparels from the US. Previously established commitments under NAFTA have remained largely unchanged. More information can be found here.

Regional Value Content (RVC) under CUSMA:

Details on Regional value content can be found here (p.7).

 

CUSMA/USMCA/T-MEC - What you need to know

The Canada-United States-Mexico Agreement (CUSMA) enters into force on July 1st, 2020, replacing the North American Free Trade Agreement (NAFTA). CUSMA retains many similarities with NAFTA however there are some changes in key industries, such as agriculture and automotive, along with some improvements to better facilitate the free flow of goods between all three countries. 

You may wish to refer to The Canada-United States-Mexico Agreement: What importers need to know for the most up-to-date CUSMA-related information or, visit CUSMA Frequently Asked Questions & Answers.

Should any additional information be required, please contact us.

Implementation:

On June 30th, 2020, NAFTA will end, and on July 1st, CUSMA will come into effect.  NAFTA certificates of origin will be replaced with the CUSMA certification.  NAFTA certificates will still be required however, to support refund claims for goods imported under the NAFTA era, and where the refund claim is filed within one year from the date of accounting.

Key points:

  • CUSMA certification of origin requirements will replace the current NAFTA certificates.
  • There is no prescribed CUSMA form. A certificate may be provided on an invoice or "any other document" that has the required data elements outlined below. For your convenience, we have developed a fillable form which you may use.
  • Provided the CUSMA certification of origin requirements are met, then CUSMA duty free status can be claimed.
  • Much of the CUSMA regulations remain unchanged from NAFTA.
  • The most impactful changes affect Low Value Courier shipments, the automotive industry, and textile and apparel goods.


Required Data Elements for a CUSMA Certification of Origin:

The CUSMA certification of origin must include the following (Annex 5-A) in order to be valid:

  • Identify the Certifier (including company name, title, full address, telephone number and e-mail address). This can be the Importer; Exporter; or Producer;
  • Exporter (including name, title, full address, telephone number and e-mail address if different from the certifier. This information is not required if the producer is completing the certification of origin and does not know the identity of the exporter.);
  • Producer (including name, title, full address, telephone number and e-mail address if different from the certifier. If there are multiple producers, state “Various” or provide a list of producers. A person that wishes for this information to remain confidential may state “Available upon request by the importing authorities”);
  • Importer (If known, including name, title, full address, telephone number and e-mail address if different from the certifier);
  • Description of the originating goods in sufficient detail to enable identification, including Tariff Classification to the 6-digit level;
  • Origin Criteria;
  • Blanket Period (if applicable- up to 12 Months max – example: Jan 1 – Dec 31 not Jan 1 – Jan 1);
  • Authorized Signature and Date of the Certifier (electronic signatures are acceptable);
  • A specific statement that must be used verbatim as follows: "I certify that the goods described in this document qualify as originating and the information contained in this document is true and accurate.  I assume responsibility for providing such representations and agree to maintain and present upon request or to make available during a verification visit, documentation necessary to support this certification".

Low-Value changes:

Shipments with a value less than $3300 CAD (increased from $2500 CAD) will be exempt from requiring a formal certification of origin **for all Free Trade Agreements currently in force - not just CUSMA**, however, the country of origin is still required on the commercial documents.

New De-minimis rules:

Shipments with a value below the de-minimis threshold are exempt from needing a certification of origin.

  • $40 - Goods valued at $40 CAD or less will not be charged duties and taxes if imported directly from a CUSMA country, regardless of the country of origin.
  • $40.01-$150 - Goods valued from $40.01 CAD to $150 CAD will not be charged duty but are subject to applicable Federal and Provincial taxes if imported directly from a CUSMA country, regardless of the country of origin.
  • $20 - Goods valued at $20 CAD or less will not be charged duties and taxes if imported directly from a non-CUSMA country.

New Tariff Rate Quotas (TRQs):

Phased in over an agreed upon period of years to increase market access to specified agricultural products such as dairy, poultry and eggs. More information can be found here.

Automotive Industry changes to origin rules & labour provisions:

(More information can be found here - Annex 4-B)

A higher Regional Value Content (RVC) requirement for certain automobiles and automobile components; 75% must be from a CUSMA/USMCA/T-MEC country (increased from 62.5%).
A new Labor Value Content (LVC) requirement where a certain percentage of a car producer’s activities must be carried out by workers earning an average wage of at least $16/hour USD.
At least 70% of steel and aluminum purchases made by vehicle producers must originate in North America.
With the exception of metallurgical processes, 70% of all steel manufacturing processes must take place in a CUSMA/USMCA/T-MEC country.

Textile & Apparel – Tariff Preference Levels (TPL):

The quota will decrease for wool apparels from the US and will increase for cotton/man-made fibre apparels from the US. Previously established commitments under NAFTA have remained largely unchanged. More information can be found here.

Regional Value Content (RVC) under CUSMA:

Details on Regional value content can be found here (p.7).

 

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